By Carla Mozee, MarketWatch
European stocks climbed Wednesday as debt-laden Greece moved to
revive talks with its creditors, and as investors waited to hear
what the Greek people will say in a vote about the crisis that's
led to banks being shut down.
The Stoxx Europe 600 rose 1.5% at 387.07, with all sectors
ending higher.
Stocks held to gains after Greek Prime Minister Alexis Tsipras
vowed to press ahead with Sunday's referendum
(http://www.marketwatch.com/story/tsipras-vows-to-hold-greek-referendum-wants-to-stay-in-the-euro-2015-07-01)
related to terms of a bailout agreement from Greece's lenders.
Tsipras urged Greeks to vote "no" in the referendum
(http://www.marketwatch.com/story/yay-or-nay-greeces-referendum-will-be-complicated-2015-06-29),
adding that a "no" vote doesn't mean exit from the euro.
Betting on yes: "Ultimately, there's a wider feeling in the
markets...that the Greek population is in favor of staying in the
eurozone," David Madden, market commentator at IG, said in an
interview. "If you're a Greek citizen living in Greece and you see
the banks shut all this week and you have a referendum coming up,
it's almost like a proxy vote," he said. "Are you voting for the
banks to be reopened or possibly remain shut?"
In Frankfurt, the DAX 30 packed on 2.2% at 11,180.50. France's
CAC 40 climbed 1.9% at 4,883.19 and Spain's IBEX 35 gained 1.3% to
10,911.50. The stock market in Greece is closed for the week. The
yield on 10-year Greek government debt was down 37 basis points to
15.10% as prices rose.
The markets are working on the "assumption of pragmatic thinking
by the Greek voter," Madden said.
The first poll figures published
(http://www.marketwatch.com/story/greek-poll-points-to-no-vote-in-referendum-2015-07-01)
since Tsipras unexpectedly called for a referendum showed 46% of
respondents backing the "no" vote. However, support for that vote
had been much higher, at 57%, before the government restricted
access to the financial system.
Read: 'Spectacular rallies' await those who buy Greece now
(http://www.marketwatch.com/story/6-ways-investors-can-play-europes-hellenic-headache-2015-06-30).
Greece ordered banks to close all week and limited ATM
withdrawals by locals to 60 euros a day ($66.52) after the European
Central Bank opted not to raise the amount of emergency funding it
had been supplying to Greek banks. The ECB was meeting Wednesday,
discussing the emergency-funding situation. Read: ECB's dilemma: To
keep Greek banks alive, or not?
(http://www.marketwatch.com/story/ecbs-dilemma-to-keep-greek-banks-alive-or-not-2015-07-01)
Greek debt crisis:Latest news
(http://www.marketwatch.com/story/greek-debt-crisis-latest-news-2015-06-29)
Stocks had shot higher early in the session after the Financial
Times reported Tsipras was ready to accept nearly all of the
conditions
(http://www.marketwatch.com/story/fresh-greek-bailout-proposals-fall-short-of-creditors-demands-2015-07-01)
to a new bailout deal its lenders proposed over the weekend.
The euro was down at $1.1080, with the dollar higher following a
stronger-than-expected report on private-sector hiring in June.
In London, the FTSE 100 rose 1.3% at 6,608.59.
Data: The final reading on eurozone manufacturing PMI in June
came in at 52.5, meeting forecasts. All nations except Greece
showed growth, Markit said in its statement Wednesday.
Separately, orders for Germany's plant and machinery industry
declined further in May
(http://www.marketwatch.com/story/german-machinery-orders-fall-in-may-2015-07-01),
industry group VDMA said Wednesday.
Movers: Deutsche Bank (DBK.XE) bounced up 4.9% after the German
lender's new co-Chief Executive John Cryan postponed a presentation
of its new strategy
(http://www.marketwatch.com/story/deutsche-banks-new-co-ceo-delays-strategy-2015-07-01)
until the end of October. Cryan said he remains committed to
reducing operations.
Airbus Group SE (AIR.FR) rose 3.7% as the company said China
will buy up to 75 of its A330 widebody jets
(http://www.wsj.com/articles/SB11064341213388534269604581080090338815096).
Serco Group PLC (SRP.LN) climbed 6.5% as the British outsourcing
firm backed its full-year expectations
(http://www.marketwatch.com/story/serco-to-report-broadly-flat-first-half-profit-2015-07-01).
Tullow Oil PLC (TLW.LN) slumped 2% after saying it sees
first-year gross profit
(http://www.marketwatch.com/story/tullow-sees-1h-profit-halving-amid-oil-price-slump-2015-07-01)
coming in at $300 million compared with $700 million a year earlier
as revenue fell 38%.
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